West Michigan Estate Planning Center

How Do You Do Estate Planning if You Don’t Have any Heirs? – West Michigan

Certain decisions are easier and others are more difficult, if someone has no heirs. However, you still need an estate plan to protect yourself in case of incapacity.

If you’ve never had children, then deciding how assets should be distributed and who to distribute them to could lead you to decide to support groups that have meaning to you. A harder decision is who to appoint as a decision maker for medical and financial decisions if you do not have a spouse or children.

CNBC’s recent article, “Planning your estate when you've got no children or heirs,” says there may be no close family members, resulting in questions of who they should leave their estate to. These people often don't know who to name as executor of their will or who to trust to make decisions for them, in the event that they become incapacitated.

Studies show that most childless people don’t make out a will. The issue with having no will (or “dying intestate”) is that the state will decides who gets your assets. Therefore, it is recommended that for those with no family ties or close friends, to focus on your interests and tie them to charitable giving. You can immediately establish your legacy and enjoy it while still living.

Another tough decision is choosing someone to have medical power of attorney, which allows that person to make important health-care decisions if you’re unable to do so. Married couples will usually name each other as their health-care proxy, but after the death of one spouse, the other with no children has the challenge of naming someone else. The same is true for childless singles who never married.

Likewise, a living will details your wishes if you’re on life support or suffer from a terminal illness. It also instructs your proxy's decision making. You also should give someone durable power of attorney to act as your agent if you’re unable to handle your finances. You can designate different people to handle healthcare and financial decisions.

You also need to designate someone to be the executor for your estate. This can be challenging for those without any family. The executor or “personal representative” has the legal authority to handle your estate. It should be someone you trust and someone who has the bandwidth to take on this responsibility.

If you can’t think of a person to name, your bank's trust division may be willing to serve as executor. You may also consider setting up a trust. Remember that some assets have beneficiaries, like 401(k) plans and life insurance policies. These accounts don’t pass through the will.

Whether or not you have children, or a spouse, you still need an estate plan to protect yourself while you are living. An experienced estate planning attorney at Cottrell & Jacobs can help you make the necessary preparations, including making the distribution of assets meaningful.

Reference: CNBC (May 31. 2017) “Planning your estate when you've got no children or heirs”

Address These Four Concerns for Blended Family Finances – West Michigan

Blending a family is not an easy task, but doing so successfully can create a new and strong family unit. Among the challenges are how to blend finances.

Blended families are no longer limited to television sitcoms. The Pew Research Center reports that 41% of all Americans have at least one step-relative of one kind or another. As many as 1,300 new stepfamilies or blended families are created daily, according to the Stepfamily Foundation. But blending families includes decisions about finances, and that includes estate planning issues.

The Miami (OK) New-Record’s recent article, “4 tips to resolve financial concerns in stepfamilies,” provides some tips and answers for issues within stepfamilies.

1. Types of accounts should be defined. A major issue for stepfamilies can be how to split finances into “yours,” “mine” or “ours.” Any combination of accounts can be just fine, but spouses should clarify the rules at the start to avoid confusion. Financial circumstances can change, so couples should review their program regularly to make sure that they have the best approach for their situation.
2. Keep documents up-to-date. After remarrying, review the beneficiaries of life insurance, pensions, and other financial accounts. It is also important to create or update a durable power of attorney, living will or a healthcare proxy to name a person to make decisions, in case of incapacity.
3. Modify your will. Inheritance issues can make children and spouses concerned about their financial futures. With that reality, a newly remarried couple should draft wills and revise any existing wills to address important estate planning issues. Wills must state, as specifically as possible, what each beneficiary will inherit. This helps minimize potential squabbles among siblings and also between the surviving spouse and children from an earlier marriage. Step-children aren’t usually considered your legal heirs, so they may not inherit if you pass away without a will containing specific provisions for them.
4. Talk with professionals. An experienced estate planning attorney at Cottrell & Jacobs will have had experience with the unique challenges facing blended families. Discuss the use of trusts, or purchasing additional life insurance to ensure that all of the children are properly protected. Be open to the discussions and to communicating with parents and children to help further the final goal: a happily blended family that remains a family after the parents have passed.

Reference: Miami (OK) New-Record (May 20, 2017) “4 tips to resolve financial concerns in stepfamilies”

For more information about Estate Planning please visit our website.

Questions Raised About Authenticity of Documents Used by Heir Locator – West Michigan

By traveling to Eastern Europe and obtaining documents thought to be long-gone, a genealogist has built a profitable business finding lost heirs. However, a court appointed lawyer reviewing his documents on one case says they are likely forgeries.

Vadim Tevelev may be a hero to those who retain his services to prove kinship for Surrogate’s Court cases. However, according to the New York Daily News, there are serious questions about the documents and genealogical records that he has provided in many cases.

The article, “Genealogist who helps heirs obtain fortunes in estate cases accused of using forged documents,” reports that Tevelev is working on behalf of a Russian-born New Jersey woman to win her part of an $8 million fortune left behind by Isaac Kramer, a Brooklyn lawyer who died in 2008 at the age of 94. However, some estate lawyers and genealogy experts have said that the family trees and genealogical records Tevelev submits as proof of kinship are not always 100% real.

A court-appointed lawyer reviewing the case said that the Ukrainian birth records Tevelev submitted were probably fakes. Roger Olson wrote in his report for a Brooklyn Surrogate’s Court judge that Tevelev has been involved in other cases where genealogical records were called into question.

Tevelev currently represents Elizabeth Hovav. He says Hovav is Kramer’s first cousin once removed and is entitled to some of the decedent’s estate. As in other estate cases, he has power of attorney for Hovav and her interest in the estate. If he’s successful in proving kinship, he typically receives a commission of one-third of the inheritance. However, Hovav and 36 other alleged relatives of Kramer have battled in the courts over the estate for almost nine years. The attorneys for the other Kramer relatives also question the validity of the documents that Tevelev has submitted over the years.

Olson obtained a 2013 report by the public prosecutor’s office in Lviv, Ukraine, which said a civil servant had pleaded guilty to forging records that showed Hovav’s mother was born in Lviv and to falsifying the identities of Hovav’s grandparents. Hovav’s mother was actually from St. Petersburg, Russia. The public prosecutor’s report also says the forgeries were made for unidentified people to get money from Kramer’s estate.

Tevelev also submitted records from the central archive of Russia’s federal security service that said Hovav’s grandparents were arrested in 1947 and executed. However, Olson reported that he obtained a letter from the federal security service that showed it had no records of Hovav’s grandparents and had never provided such a document.

Tevelev’s attorney said that Ukraine’s National Police Department later conducted its own investigation into the civil servant’s alleged forgery in 2016 and decided that no crime had occurred. But the police also said that evidence in the case had been lost because of the 2014 riots in Ukraine.

Tevelev, who lives in New Jersey, but was born in Russia, said he’s been an “heir hunter” since 1991. He said he considered himself a specialist in foreign documents and locating people overseas.

Tevelev and Hovav are still likely to get significant payouts from the Kramer estate, no matter how accurate Olson’s report is. The attorneys for all of the alleged relatives involved in this matter have requested that a judge let them reach a settlement among themselves. They have apparently chosen to overlook the issue of forgery altogether. According to court filings, one possible deal being examined would give Hovav as much as $300,000.

For more information about Estate Planning please visit our website.

Reference: New York Daily News (May 15, 2017) “Genealogist who helps heirs obtain fortunes in estate cases accused of using forged documents”

Estate Planning Priorities to Protect Loved Ones – West Michigan

Estate planning is something that young families need to do just as much as their parents or grandparents. Estate planning is about far more than asset distribution.

Did you know that estate planning includes naming guardians for minor children in the event that both of their parents die before the children become of legal age? Most people don’t understand that when tragedy strikes and there is no will, guardianship is assigned by the court and not by trusted family members.

Estate planning isn’t just a topic for older people. It’s for young families with children, often the least prepared and most vulnerable in the absence of a will.

Planning your estate doesn’t mean you must have significant assets. Even if you are making a decent living, you still need to protect your family's future, like your home equity and your family's ability to maintain their lifestyle if you are gone. This requires you to take some simple steps now to avoid long and costly probate court proceedings.

The Chicago Tribune’s article, “5 essential steps of estate planning,” lists some things you should be doing now, before things get complicated.

Make decisions on who gets what. Create a list of your assets, how you want them distributed and the names of the person(s) appointed to carry out your wishes.

Visit a local estate planning attorney and do it correctly. This is not a do-it-yourself project with documents found online. If you make a mistake, you won't be around to correct it by the time it is discovered. Instead, engage an experienced estate planning attorney at Cottrell & Jacobs.

Learn about your estate plan options. Talk with your attorney about a will or a revocable living trust. A will must go through probate before assets can be distributed. If you create a revocable living trust, name yourself as trustee while you are alive and capable. If you pass away or become incapacitated, you have a successor trustee to take over so that he or she won’t have to go to probate court to be empowered to carry out your written instructions. With a trust, you must re-title your assets in the name of your trust.

Look at your health care issues. You never know if illness will take away your ability to make decisions. Select a trusted friend or family member to be your healthcare power of attorney. You should also make a living will to express your thoughts on any treatment required to prolong your life, as well as your desires for organ donation.

Think about your funeral wishes. Write these instructions down and place them in a spot where they can be found before your will is read. This usually takes place after the funeral is held.

Finally, don’t leave the process in mid-stream. Documents need to be signed and trust accounts need to be funded. If there are changes made to property ownership, titles need to be updated. You should also remember to tell key family members where documents are located and to provide contact information for your estate planning attorney. Making this easier for your surviving family members will be appreciated and remembered long after you are gone.

For more information about Estate Planning please visit our website.

Reference: Chicago Tribune (May 8, 2017) “5 essential steps of estate planning”

First Responders Need Living Wills as Much as Their Patients – West Michigan

First responders may seem cold-hearted about DNRs and patient family members who are unprepared for the hard decisions that EMTs deal with every day.

Part of being a first responder is helping people and their families during a crisis, when a serious injury or illness or death results in a call to 911. But members of the first responder community are just as likely not to have a living will as the patients they see.

EMS1.com recently posted a story, “Why EMS providers need living wills.” It explains that a living will—contrary to most other estate planning documents—has no authority after the creator of the document passes away. A living will or advance directive provides instructions about your end-of-life care. It can include as much or as little direction as you want, such as the use of pain-relieving treatments, do not resuscitate (DNR) orders, life support and organ donation.

A living will helps your family members carry out your wishes. However, it often doesn’t cover everything. For instance, if you don’t specify whether you’d want certain life-saving treatments, like emergency surgery in the living will, you should have a trusted agent to act in your best interests and help you to carry out your wishes.

First responders need both a health care power of attorney and a living will. Due to the high risk of serious injury that comes with a first responders’ duties, it is even more imperative to have this advanced planning in place. In many states, the health care power of attorney is part of the living will. The agent or the “health care proxy” has the authority to act on behalf of the incapacitated first responder, if the first responder is incapable of making decisions on his or her own.

But why do I need a living will?

Be in control of your end-of-life decisions. Without a living will, the decisions to carry out your last wishes could be made by the court. In this situation, state law takes effect and dictates who will have a say in your well-being. A living will lets you control how decisions are made and who will make them.

Protect your life partner. Without a living will, the law will place the health care power of attorney in the hands of your spouse, and then your family. If you have a long-time partner, but are unmarried, your partner would have no say in any end-of-life decisions.

Select one of your children to assist. With a health care power of attorney, you eliminate confusion as to which of your children will make the decisions to enforce your living will and decisions on end-of-life care.

Peace of mind. A living will gives you and your loved ones comfort and peace of mind. This is a stressful time, and a living will helps smooth out the logistics and questions that will arise.

Organ donation. You can state your instructions for organ donations in a living will.

When there is no living will, or if the living will is not on site and with the patient, decisions for a loved one who is near death become even more challenging. Without it, first responders must act following the law, which usually means resuscitating the patient, whether the patient wants this or not. With a living will, family members and first responders will know what you want and will be able to comply with your wishes. This prevents a great deal of confusion and heartache for all.

Reference: EMS1.com (May 6, 2017) “Why EMS providers need living wills”

For more information about Estate Planning please visit our website.

Why “Regular Folks” Need an Estate Plan – West Michigan

An estate plan does a lot more than distribute your assets among family members and organizations that share your values. It also protects you and your loved ones. That’s why everyone needs an estate plan, especially if you have minor children.

It’s amazing that some people still think they don’t need an estate plan. According to an article in Trust Advisor, “Why An Estate Plan Is Beneficial,” a small estate needs the protection that an estate plan can offer against unnecessary expenses and ensures that personal, financial and charitable goals will be fulfilled. There are four key reasons why everyone needs an estate plan:

1. Stipulating Care for Yourself. This includes a healthcare proxy, power of attorney and living will that states how you want to be cared for, if you become incapacitated.
2. Financial Security. Your will lets you specify the way in which you want your assets distributed and to whom. Without a will, state probate law will determine who receives your assets.
3. Designating Guardians. If you have minor children, it’s critical to make written arrangements for their care. A will is the only legal way to do so in most states (e.g., California is an exception). You must designate a person that you want to be entrusted with the care of your children.
4. Naming Beneficiaries. A key part of an estate plan includes making sure that beneficiary forms are completed—that means signed and dated—for everything from insurance policies to retirement accounts. Any asset that permits beneficiaries to be named, should be reviewed as part of the estate plan. Those accounts and beneficiary designations need to be reviewed any time there is a major event in your life, like marriage, divorce, welcoming a new child into the family, or at the death of a family member. Remember to also name a contingent beneficiary.

Reference: Trust Advisor (April 29, 2017) “Why An Estate Plan Is Beneficial”

For more information about Estate Planning please visit our website.

Don’t Make a Search for Your Will into a Scavenger Hunt – West Michigan

Some taboos have changed, but the talk about wills and distribution of assets remains an awkward one for many. That includes telling adult children where estate planning documents have been stored.

To keep peace in the family and to avoid the conflict that so often follows the death of a parent, it’s almost as important to discuss what’s in your estate plan and where it’s located, as to have one created. As reported in a recent ThinkAdvisor article, “Where There’s a Will, There’s a Way — if Loved Ones Can Find It,” today’s family dynamics are complicated. Start by talking about where your will is located, then launch into a discussion about your intentions.

BMO’s survey of 1,008 Americans 18 and older, found that 52% of all respondents didn’t yet have a will. This figure rose to 56% among those between 35 and 54. Of married adults who had a will and/or powers of attorney, 25% said only their spouse knew where the documents were kept.

Many issues, challenges and potential family conflicts can be avoided when an estate plan and will are in place. A person who passes away in the U.S. without a will, may have his or her estate controlled by state intestacy laws. That will determine who will receive assets from the estate.

The survey also found that 40% of parents had never discussed their estate plans with their kids. Just 28% of all adults said they knew about their parents’ wills or estate distribution plans. A total of 40% of the survey’s respondents said the distribution of their parents’ estates was unfair.

The survey noted that an estate plan with an up-to-date will and open conversations with the will’s executor and heirs were important to achieving estate planning goals. A will and estate plan should always be reviewed when any of these occur:

• Marital status changes
• Birth of children and grandchildren
• Purchase of life insurance
• Retirement
• Receipt of an inheritance
• Health changes

 

You may also want to explain to your heirs that there’s more in an estate plan that who gets what. A good estate plan includes a focus on minimizing tax liability and distributing wealth across generations to maximize value. It may take a few conversations, but this will protect the stability of the family.

 

For more information about Estate Planning please visit our website.

 

Reference: ThinkAdvisor (April 6, 2017) “Where There’s a Will, There’s a Way — if Loved Ones Can Find It”

How to Help Parents Get Estate Planning Done – West Michigan

Unless you’ve been the one to clean up after an inheritance disaster, it’s hard to comprehend how important estate planning is. Once you’ve been through the wringer, you don’t want to do it again.

There are families who understand the importance of estate planning. There are even some who use it as a tool to facilitate discussions with their adult children about what they would want to happen if they were to become incapacitated and get their children on the same page about family values and legacies.

However, as reported in The Napa Valley Register’s “Estate planning for your parents,” not all parents are open to this. Some are insecure about their lack of knowledge, and there can be fear of the cost or undue influence. In some instances, parents just don’t want to come to terms with their mortality. Whatever it is, if a parent delays or doesn’t make an estate plan, the children will potentially have stress and conflict—and have to clean up the mess.

Probate is a tiresome, slow moving and bureaucratic headache. There are delays and hard feelings. Probate can also wind up with the wrong people inheriting wealth and family treasures. If you’re not certain if your parents have a proper estate plan designed by a knowledgeable attorney, there are several ways to approach this before a crisis.

The easiest way to see if your parents have a solid estate plan is to ask, “Hey Mom, do you and Dad have a will and a trust?” In addition, see if they have disability planning and other medical documents in place.

If a subtler approach is required, you can try asking for advice from your parents. Tell them you’re trying to get your personal affairs in order and need their help. You can ask them what estate planning they’ve done and what attorney they used. This may get them to open up about their situation, in order to help you with yours.

Another way to ease into this conversation is with an anecdote. You may know a person who had an easier time with proper planning, or maybe you know someone whose life was troubled by avoiding it.

If your parents simply don’t want to talk about this type of planning, you may seek the help of another sibling. They may respond better to your brother or sister.

You can also ask a relative or a trusted friend to broach the subject.

This may sound a little extreme, but there is another option to consider. If your parents are worried about their finances, you can offer to pay for an estate plan to be created. You may end up spending more after they pass, if there’s no estate plan in place. The amount of time, money and stress you avoid, makes this well worth it. Think of it as an investment in your emotional well-being.

Reference: Napa Valley Register (March 26, 2017) “Estate planning for your parents”

For more information about Estate Planning please visit our website.

Welfare Check on Senior Leads to Lawsuit against NYPD Officer – West Michigan

A federal judge has ruled that a police officer’s uninvited entry into a house to check on the well-being of an adult with dementia, is shielded by qualified immunity. The response to a possible crisis was correct.

Given the number of elder abuse cases, it is encouraging that New York Judge Frank Geraci’s decision, as reported in the New York Law Journal’s article, “Officer's Welfare-Check on Elderly Man Is Shielded by Immunity, Court Says,” supported the actions of Lt. Joseph Buccilli, a police officer with the Orchard Park, NY Police Department.

The judge said the police officer was protected by his good faith actions in responding to an emergency. He had qualified immunity from a suit filed by the owners of the home he entered, in alleged violation of residents' Fourth Amendment rights to privacy. The judge went on to say that even if Buccilli's beliefs that his actions were justified in entering the home were based on wrong assumptions, the officer’s actions weren’t so "plainly incompetent" as would qualify as a violation of the resident's Fourth Amendment rights.

The judge said "…no one has pointed this court to any controlling case that clearly establishes the answer to this question: When performing a welfare check on an individual in response to a request from adult protective services (or a similar agency), may a police officer enter a location to determine the welfare of that individual?"

Buccilli was called to the Buffalo area home of the Batt family. LuAnn was the daughter of the elderly Fred Puntoriero, whom the family had taken in after he was diagnosed years earlier with dementia. Fred's daughter-in-law called the local Adult Protective Services in April 2012, complaining that she and her husband hadn’t been permitted to see Fred for several weeks. They were concerned about his condition. Fred’s son (Joe) and daughter (LuAnn) each had power of attorney over their father, according to the ruling.

Adult Protective Services made a 911 call to Buccilli the next day. Joe didn’t want to let the officer in, but Buccilli followed Joe through a side door and found wheelchair-bound Fred inside the home. Fred looked well-groomed and well-fed. He was able to identify himself, and an Adult Protective Services case worker later confirmed that Fred was under hospice care and was receiving good care.

LuAnn Batt sued Lt. Joseph Buccilli, alleging their Fourth Amendment rights were violated.

Fred died later that year, at age 76.

Reference: New York Law Journal (April 3, 2017) “Officer's Welfare-Check on Elderly Man Is Shielded by Immunity, Court Says”

For more information about Estate Planning please visit our website.

No Good Deed Goes Unpunished: Senior Finances – West Michigan

It’s hard to say no when someone you love asks for help, but when it comes to money, helping a senior with paying bills or grocery shopping could turn into a felony.

A simple transaction, like writing out a check or accepting cash for groceries for a senior, even if it’s for your very own mother, doesn’t seem like a bad thing to do. However, the potential for a simple act of kindness to be perceived as criminal activity against a senior is very real.

Bankrate’s article, “Be cautious before helping seniors with their finances,” warns that unless you’re an only child helping your parent, when you start writing checks, suspicions may arise, with or without justification.

At Cottrell & Jacobs, we hear of financial elder abuse suspicions and actual abuse on a regular basis. Therefore, just because a senior asks for your help, doesn't mean you should help. This is because things can get complicated.

Once you get involved, you may see that there are many moving parts. There could be an already-troubled senior who’s paying some bills twice and some not at all, or donating money to questionable organizations. Their finances may be in disrepair. Remember, if you don't have the time and aren’t ready to take on a complex process with legal implications, just say no.

Power of Attorney. A power of attorney gives the holder authority to execute certain transactions. While you don't need an estate planning attorney to create up a power of attorney (POA), you're taking a chance if you choose the do-it-yourself route. If you need to obtain a guardianship (or conservatorship) for the senior, you’ll need an elder law attorney. A guardianship gives you the authority to take control of the senior’s finances. There will be a court hearing, and you’ll have to present medical records and be represented by an attorney.

Minimize Risks. It is important to try to minimize the risks for the senior and maximize financial accountability. Monthly bills, like utilities, can be directly debited from the senior's bank account. You should never sign the senior’s name on checks or credit card purchases. They may insist that it is okay, but they would be wrong.

Record-keeping. Regardless of the amount of authority you have been given to help a senior or control their finances, it's crucial that you keep meticulous records to protect yourself. POAs should hang on to receipts for everything and never combine their money with the senior's money. You should never borrow money from them, and don’t fall into the trap of believing you’re entitled to money because their family is never involved. That’s financial exploitation, and it is a criminal act.

Talk with family members regularly. Even if the senior tells you that their family does not care or isn’t interested, protect yourself with ongoing communication with more than one family member. There may be factions, vendettas and private agendas within the family that you are not privy to. It is essential that you document everything and have regular meetings. You can also share reports with these family members.

As an extra layer of protection for yourself, you may want to have a conversation with the family‘s estate planning attorney. If there is no attorney involved, be extra cautious, since you may be wading into a swamp of litigation and accusations.

For more information about Estate Planning please visit our website.

Reference: Bankrate (February 15, 2017) “Be cautious before helping seniors with their finances”